State Sen. John McKinney of Fairfield is calling for Gov. Dannel P. Malloy to revoke a recent $9 million incentive package for HomeServe to relocate its North American headquarters from Stamford to Norwalk. The company has been fined several times for deceptive sales tactics in the past, McKinney says.
Similar to AAA for car repair services, the British company offers emergency home repair services to remove the hassle ”“ and perhaps the expense ”“ of plumbing, electrical, heat and air conditioning problems.
The company is slated to receive a $1 million grant, a $3 million loan and up to $5 million in tax credits, in exchange for retaining its North American headquarters in Connecticut and a promise to create 130 new jobs. The company held its ribbon cutting ceremony at the Merritt 7 Corporate Office Park Dec. 11.
Though the company is expected to grow, McKinney, a Republican, questioned the vetting process that went into awarding HomeServe economic assistance. In 2011 state officials in Massachusetts fined the company $85,000 for sending “deceptive” marketing materials to 950,000 homes, McKinney said. The  Better Business Bureau has also issued alerts and warnings about the company’s practices in Minnesota, Iowa, Alabama, Florida, Nebraska and South Dakota.
“BBB Â has received numerous complaints, from consumers across the country, concerning this business”™s direct mail solicitations, specifically that the solicitations”™ layout may cause consumers to perceive the letters as coming from the consumers”™ utility companies and not an independent business selling home warranty or insurance coverage,” McKinney said in a statement. “BBB also received customer complaints concerning coverage issues, specifically that when a problem occurred, it was not covered by the policy.”
“Through a simple Google search, this is what I found,” he continued. “And yet, here we are, prepared to hand out millions of taxpayer dollars so that another company can move from one Connecticut city to another… Did anyone do any research or did they just write out the check?”
At the ribbon cutting, Gov. Dannel P. Malloy said his administration is hard at work, bringing good-paying jobs into Connecticut and letting companies know Connecticut is a good place to invest and do business.
HomeServe employs roughly 650 employees in North America and had considered moving its headquarters elsewhere when it had outgrown its Stamford office. It also has offices in Tennessee and technician sites in New York and New England.
“We are very happy to have Norwalk be your new home,” Malloy said. Â “HomeServe”™s decision to grow here means hundreds of jobs… You”™re ability to have grown as rapidly (as you have) is remarkable…It”™s those kinds of ideas that we want to see start in our state.”
Malloy said the state package would help support the company”™s $33 million expansion plans, which include moving to Merritt 7 and adding new jobs.
“Our U.S. market here is our biggest growth opportunity,” said Richard Harpin, HomeServe”™s global chief executive, at the ribbon cutting. “I think it”™s particularly exciting that our North American headquarters are here in Norwalk. Connecticut is a very friendly business state and we”™re happy to have their support.”
